Kraken Considering Secured Loans In Exchange For NFT | Money


The Kraken marketplace wants to offer a new feature for lending its NFTs for cash. – Photo ETX Studio

NEW YORK, December 29 – Kraken, a marketplace for non-fungible tokens (NFT) wants to offer a new loan service based on NFT. In exchange for a token as collateral, Kraken will provide funds to the user. While the initiative is still ongoing, this could prove to be an industry first and even a first real use for NFTs.

“I want to get a loan of US $ 5,000 (20,902 RM), in exchange I offer you my BoredAPE token, bought at US $ 3,500, but whose value keeps increasing.” It sounds surreal as an exchange but this type of deal could soon become reality … Kraken, a marketplace in the crypto-asset world, is looking to diversify its user base and wants to promote a new use of NFTs. So, in exchange for a token (of a certain value), the company would provide you with funds to make another purchase. This is a new type of offer that would primarily target customers who would like to do more than just collect digital tokens.

“’If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of it to your account. And if you want to borrow funds against that, “Kraken is working on a system to determine the liquidation value of the deposited NFT,” noted a Bloomberg News interview with Jesse Powell, founder of Kraken. For now, such a service is only at the planning stage, but it could quickly become a reality.

The first concrete use of NFTs?

Over the past year, a DTV boom has been observed in several sectors. Whether in the field of art, culture, cinema, sport or video games, there are many examples. And the same goes for companies who are working in one way or another with these new tokens, to create a stronger relationship with their fans or users of their service. Meanwhile, the stock market is still determining the actual values ​​of NFTs to allow clients to use their tokens as collateral. “The first phase was speculation, the second phase is to buy art and support artists, the third phase will be dedicated to the functional uses of NFTs,” added the CEO of Kraken.

Kraken’s goals in developing this new service are also to attract users from larger markets such as Binance, FTX and Opensea (for NFTs). Kraken has just over 8.5 million users, double the amount of last year. But this figure is still far from those of industry leaders like Binance (more than 85 million customers), but we know that everything can change very quickly in this area. – ETX Studio


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